90.2K

Verified Solution

Link Copied!

Kingston Company uses the dollar-value LIFO method of computing inventory. An external price index is used to convert ending inventory to base year. The company began operations on January 1, 2021, with an inventory of $201,000. Year-end inventories at year-end costs and cost indexes for its one inventory pool were as follows: Year Ended Ending Inventory Cost Index December 31 at Year-End Costs (Relative to Base Year) 2021 $ 291,600 1.08 2022 376,420 1.18 2023 355,350 1.15 2024 349,650 1.11 Required: Calculate inventory amounts at the end of each year. (Round intermediate calculations and final answers to the nearest whole dollars.)

Inventory Layers Converted to Base Year Cost Inventory Layers Converted to Cost Inventory DVL Cost Date Inventory at Year-End Cost Year-End Cost Index Inventory Layers at Base Year Cost Inventory Layers at Base Year Cost Year-End Cost Index = Inventory Layers Converted to Cost 01/01/2021 = Base = $0 12/31/2021 = Base = 2021 = $0 12/31/2022 = Base = 2021 = 2022 = $0 12/31/2023 = Base = 2021 = 2022 = 2023 = $0 12/31/2024 = Base = 2021 = 2022 = 2023 = 2024 = $0

Answer & Explanation Solved by verified expert

See Answer